0bama and the RATS should be patting themselves on the back for this one...
Posted on 11/20/2008 4:08:40 PM PST by BlackVeil
NEW YORK - US stocks plunged yet again, as a frantic flight from risk prompted by investors' deepening economic fears drove the benchmark Standard & Poor's 500 index to its lowest level since 1997 -- completing the erasure of more than a decade of stock market gains.
The latest leg down in what has been a 13-month whipping of equities worldwide was led by the year's weakest links: banks, commodity producers and car makers.
The S&P 500 is now more than 52 per cent below its October 2007 record high, making the current bear market the second biggest on record. The current decline is exceeded only by the 83 per cent drop between 1930 and 1932, according to the Stock Trader's Almanac.
"People are looking for light at the end of the tunnel and people don't see anything," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.
On Thursday, the price of oil hurtled below $US50 a barrel, taking energy shares with it as dismal US economic data intensified concerns of a long and deep global recession, crushing fuel demand expectations. Chevron tumbled more than eight per cent and dragged the most on the Dow.
The Dow Jones industrial average plunged 444.99 points, or 5.56 per cent, to 7,552.29. The Standard & Poor's 500 Index lost 54.14 points, or 6.71 per cent, to 752.44. The Nasdaq Composite Index slid 70.30 points, or 5.07 per cent, to 1,316.12.
The number of American workers on the unemployment rolls surged to the highest in a quarter century, government data showed, while a regional manufacturing gauge slumped as the economic misery intensified.
Financial stocks helped lead the way lower. Citigroup dove 26.4 per cent to $US4.71 on growing worries about whether the second-largest US bank has enough capital to withstand billions of dollars of additional loan losses, overshadowing fresh support from Saudi Prince Alwaleed, its largest individual investor.
An S&P index of financial shares tumbled 10.5 per cent. JPMorgan Chase & Co was the second-heaviest weight on the Dow, falling 17.9 per cent to $US23.38.
Detroit's bailout hits speed bump
Further uncertainty over the prospects for a bailout for struggling automakers added to the gloom. Democratic leaders warned the bill would not pass unless it included a plan for the industry to return to profitability.
Shares of General Motors and Ford were tied to the bailout news, ending higher after falling sharply earlier in the day. GM rose 3.2 per cent to $US2.88, while Ford advanced 10.3 per cent to $US1.39.
Democratic leaders said automakers can submit another plan by December 2, adding that the proposal could be considered the week of December 8.
In the energy sector, Chevron dropped 8.8 per cent to $US64.40, while an S&P index of energy companies tumbled 11.2 per cent.
US front-month crude oil fell $US4.00 to settle at $US49.62 a barrel, the lowest settlement since May 23, 2005.
Volume was heavy on the New York Stock Exchange, where about 2.23 billion shares changed hands, above last year's estimated daily average of 1.90 billion, while on the Nasdaq, about 3.15 billion shares traded, well above last year's daily average of 2.17 billion.
Decliners outnumbered advancers on the NYSE by a ratio of 13 to 1, while on the Nasdaq, nearly seven stocks fell for every one that rose.
Next stop, 7000. All aboard!
And spread the wealth guy is going to be able to say he inherited Dow 7500 or whatever when he takes office.
He doesn’t get blamed at all for the leadup.
what was the joke about the Russians and perestroika? We are standing at an abyss and about to take a giant step forward.
So...how do you blame that on the O?
0bama and the RATS should be patting themselves on the back for this one...
This cogent analysis assures me that we will be able to come up with the solution when Republicans are once again given the reins to the government.
/sarc
They are certainly falling in Australia. And major problems with banks - meeting with sinking companies to "discuss" their loans. The figures are enormous.
The lower the market goes, the stronger his case will be for regulations and sweeping new policies. All of which will of course make things much, much worse.
Sellers are saying they are reacting to O’s planned new burdens on business and high earners. O’s had no problem playing President up ‘till now; he can move the markets either way depending on his tax/spend plans. This is very much his market.
“People are looking for light at the end of the tunnel and people don’t see anything,” said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.”
True. A lot of it is emotional. Caused by uncertainty in Washington. Then the raising of expectations, like with the Auto co loans, when stopped by Pelosi, fueled the down turn.
How in the world can they return to profitability when the Democrat plan is to siphon any profitability to the unions and ecos?
Well, for me... I’m starting to buy in. There are some *epic* bargains out there. Even if they continue to decline for a while, ten years from now they’ll be looking pretty good.
Envision the market in Summer 2012, in the doldrums, dropping over the next 4 years from 7000 to 6000 to 4000... when Palin/Jindal appear to be headed for a landslide. IMHO there would be quite a market anticipational SURGE, back up to what it was at least a few months ago. Of course, THEN the 'Rats will say its The One in office responsible, but that is only to be expected of 'em.
-——> Obvious question: Is this a reaction to NObama getting elected?
This is true. The worse things get, the more power the left will have.
However, markets don’t run on theory or on politics, and there’s nothing about Obama that makes people think their money is going to grow or even hold its own. So I’m not really sure what can be done now.
I blame it all on Obama and the dems. Every bit.
It can only return if the dem's are stifled politically and the stifling is perceived as permanent.
A long row to hoe....
Yeah ..the shoot off your face to spite your nose crowd.
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